The Delhi High Court on Friday quashed several circulars issued by the Directorate of Education (DoE) that required schools to seek prior permission for increasing fees at the start of an academic session. Justice Anup J Bhambhani reiterated that the law does not mandate such prior approval.
Court's Directive on Fee Hike
Disposing of a batch of petitions filed by over a hundred schools, the court directed that the fee increase last proposed by the schools in their statements filed with the DoE would apply, but only from the next academic session beginning April 2027. The court clarified that no school shall demand or recover any arrears of fee or other charges retrospectively for past academic sessions.
DoE's Overreach Criticized
The high court observed that the DoE acted in excess of its authority and in disregard of the law laid down by the Supreme Court and several pronouncements of this court, putting both parents and schools in an unenviable position. Under Section 17(3) of the Delhi School Education Act, a private, unaided, recognized school does not require prior permission to increase its fee at the start of an academic session. The only statutory obligation is to file a statement of proposed fee with the DoE before the session begins. Prior approval is needed only if a fee hike is proposed during an ongoing session.
Financial Autonomy of Schools
In a 120-page order, Justice Bhambhani emphasized that the mere availability of surplus funds with a school, however large, cannot be the sole basis for the DoE to infer commercialization or profiteering and object to a fee hike. Such aspects can only be examined after a full-fledged financial audit by the prescribed authority based on audited returns filed by the school. The court also held that there is no distinction between schools with or without a "land clause" regarding the DoE's role and powers. If an audit finds profiteering, the DoE may inform the land-owning agency, which can take action under the lease. Schools enjoy financial autonomy, and it is not for the DoE to dictate or micromanage their fiscal affairs.
